Sustainable policy needed for social security fund, says minister
In response to rumour that the social security fund would dry up within fifteen years, Labour Minister Chatumongol Sonakul said the fund remained steady citing an actuarial report complied by the Social Security Office (SSO) and the International Labour Organisation (ILO) in 2015.
However, the minister admitted that future factors, including the growing number of elderly citizens, decreasing number of labourers in the social security’s system and improved benefits, may affect the status of the social security fund in the future.
To ensure stability, we must evaluate the long-term economic situation for a sustainable policy, he said.
The fund's investments are listed on its website as a matter of transparency.
"SSO members should be confident of the organisation’s fund management and continuous creation of cumulative returns, aimed at boosting its liquidity towards the cost of care and better benefits for the insured,” he said.
SSO investment, as of September 30, amounted to Bt2.05 billion, comprising Bt16.33 billion in highly stable asset, 79 per cent of the total, and Bt421 million in risky asset (21 per cent).
At the end of September 2019, the fund's acknowledged investment returns stood at Bt65.82 billion, growing by 18.4 per cent year on year from Bt55.6 billion.
Dividends and profits from the sales of equity securities and investment units were the main contributor with interest and gains from selling bond and stock loan fees making up the balance of Bt33.24 billion
“The Bt65.82 billion of acknowledged investment returns was 3.45 per cent of Bt1.9 trillion in the fund's total investment last year,” the minister added.
